(a) No housing project or projects for elderly persons shall be developed until the commissioner of housing has approved the site, the plans and specifications, the estimated development cost, including administrative or other cost or expense to be incurred by the state in connection therewith as determined by said commissioner, and an operation or management plan for such project or projects which shall provide an income, including contributions expected from any source, which shall be adequate for debt service on any notes or bonds issued by the developer to finance such development cost, administration, including a state service charge, other operating costs and establishment of reasonable reserves for repairs, maintenance and replacements, vacancy and collection losses. Said service charge shall be sufficient to provide for administrative or other cost and expense incurred by the state as determined by said commissioner in regulating or supervising the operation of such project or projects from and after the date of completion of construction thereof as determined by the commissioner. During the period of operation of such project or projects, the authority shall submit to the commissioner for his approval its rent schedules and its standards of tenant eligibility and continued occupancy and any changes therein, and its proposed budget for each fiscal year, together with such reports and financial and operating statements as the commissioner finds necessary.
(b) The commissioner shall have the right of inspection of any such project at any time.
(c) The commissioner is authorized to make orders and regulations with respect to the development and the operation and management of such project or projects by housing developers, and to determine the allocation of funds to meet the development costs of such project or projects, including administrative or other costs or expenses to be incurred by the state.